The former Head of the National Counter Terrorism Security Office has said that the 5G network will be “extremely important to run everything”.
Chris Phillips added that the UK needed to be careful who had access to this information.
It was suggested that peers should reveal their interests involving foreign money under new transparency laws drawn up amid concern over Russian and Chinese influence on British politics.
MPs have raised concerns over allowing Chinese company Huawei to bid for contracts in the 5G network, though the government has said no final decisions have been made.
Currently unlike MPs, peers do not have to declare how much money they have earned from foreign activities in the Register of Members' Financial Interests.
Mr Phillips told talkRADIO’s Julia Hartley-Brewer: “We are putting everything on the internet. The 5G system will be extremely important to this country to run everything from aeroplanes to all our computer systems.
“We have got to be really careful about who we give access to. It is not necessarily that this company would naturally want to give information away to the Chinese government but companies in China run under different rules.”
Mr Phillips added that he was “disappointing” that it had taken the government so long to address these issues.
On Monday, the Security Minister Ben Wallace said a lack of complete transparency in Westminster was a "weak point" in Britain's defences against hostile countries.
Mr Phillips said: “What we have got to be careful of is our critical national infrastructure. Telecommunications is a key part of our critical national infrastructure and we have always tried to protect that.”
“Countries such as US and Canada are rightly concerned about the information we are passing over,” he added.